PACW - Markets Down as Some Earnings Disappoint

The Dow Jones Industrial Average and S&P 500 fell as Disney shares were under pressure and concerns around regional banks persisted.

The 30-stock index plummeted 238.44 points to 33,292.89, following a lower-than-expected wholesale inflation report and earnings from Disney

The S&P 500 index lost 8.53 points to 4,129.11.

The tech-heavy NASDAQ recovered 27.16 points to 12,333.60.

Disney shares fell more than 8% after the media giant released its fiscal second-quarter results. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The company also announced it would take on impairment charges of $1.5 billion to $1.8 billion as it removes more content from its streaming platforms.

Investor worry over regional banks once again flared up. PacWest Bancorp, the latest troubled bank in focus, said Thursday in a 10Q filing that deposits fell 9.5% last week. PacWest shares dropped another 22% Thursday. PacWest added that the bank has access to $15 billion in immediate liquidity, if needed.

The producer price index, the Federal Reserve's preferred inflation gauge that measures wholesale prices, increased just 0.2% in April.

Economists polled by Dow Jones estimated PPI advanced 0.3% last month. The PPI data follows the consumer price index report from Wednesday, which showed inflation rose 4.9% year-over-year, below expectations.

Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, the Department of Labor said on Thursday. The latest jobless data was the highest reading since Oct. 30, 2021.

Prices for the 10-year Treasury moved forward, lowering yields to 3.38% from Wednesday's 3.44%. Treasury prices and yields move in opposite directions.

Oil prices stepped back 97 cents to $71.59 U.S. a barrel.

Gold prices sank $14.40 to $2,022.70 U.S. an ounce.

Markets Down as Some Earnings Disappoint